BENGALURU (Reuters) – Indian consumer goods maker IFB Industries posted nearly an 11% drop in second-quarter profit on Thursday, hurt by reduced demand for its home appliances.
The company’s consolidated net profit fell to 215.3 million rupees ($2.59 million) for the three months ended Sept. 30 from a profit of 241.2 million rupees a year earlier.
Analysts described the September quarter as a seasonally weak quarter for consumer durables businesses such as IFB Industries.
The overall demand remained weak as consumers restricted their spending, the analysts had said earlier.
Rising competition in the sector also exerted pricing pressure on the company.
IFB’s revenue from operations fell 1.5% to 11.01 billion rupees, dented by a near-3% drop in its home appliances vertical, its biggest segment which contributed about 78% to the total.
Kolkata, West Bengal-based IFB Industries makes a range of home appliances products, including washing machines and air conditioners.
The company’s shares settled 0.5% higher ahead of the results. The stock rose nearly 11% during the September quarter.
($1 = 83.2028 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Sohini Goswami)